Switching your energy supplier is one of the simplest things you can do to save money on your household bills without any disruption or even noticeable difference, other than seeing the extra cash in your bank account each month.
Since the market was opened up in 1999 a choice was available on who to use for your gas and electricity supply. Gone are the days of the Gas Board and there are now a range of companies who are available to get your utilities from.
Switching your energy supplier is an easy choice based on who will charge you the least for the gas and electricity you use on a monthly basis. It’s not like trying to save money on your shopping by buying the ‘value’ washing-up liquid which refuses to create even a hint of bubble in your washing up bowl , you are still getting the exact same gas and electricity, just paying less for it.
I’m sure you’ll agree that if the end product is the same, nothing changes, but you just pay less each month then it makes sense to use a company that will send you cheaper bills, right?
Why are some Gas & Electricity providers cheaper than others?
Each energy supplier has a different scale of charges, usually at two different rates. For example:
First 200 units = £0.55p each
Over 200 units = £0.30p each
First 200 units = £0.50p each
Over 200 units = £0.35p each
These are two typical types of pricing structures that most companies adopt.
In this scenario Company A would be best for a high usage household, maybe a large house, two parents and a couple of children with the utilities being used on and off throughout the day, whereas Company B would be better for a single person, living in a small property who is out at work most of the day.
Also Read: 10 Areas to Inspect Before Buying a Home
It is not that different companies are trying to charge you more for no reason; just you may not be with the right company for your current gas and electricity uses.
I’ve heard about service charges, should I pay this?
Some companies, instead of charging two rates for different usage amounts add a standing charge to your bills and then charge all usage at a lower, single rate. There is nothing wrong with this but is tends to be the better deal for higher usage households, whereas smaller usage accounts may benefit on a tiered tariff.
How can I get a discount on my electricity bill?
A lot of companies will offer you a discount on your bill if you take both gas and electricity together, on a duel-fuel tariff and then give an even further discount on your power if you pay via direct debit on a monthly basis, which is probably how you pay most of your bills anyway, most people do these days.
How easy is it to make the change once I have picked a new Energy Supplier?
Changing your energy company is a very easy process and once you have done it, and started seeing the savings, you will wonder why you didn’t do it sooner.
- Apply to your new chosen provider and wait to receive your sign-up package through the post
- Send confirmation to your current company.
- Cancel your direct debit to your old company – you can do this in a couple of clicks on online banking.
- Read your meter on a specified day (chanegover day) and send them to your new supplier.
- Relax and enjoy the savings.
Lowering your energy bills on one of the simplest things you can do to save money and with savings up to £1000 a year on some tariffs we’ll sure you’ll agree that the money is better off in your pocket. Don’t just look at one year’s savings though. This is a saving you will make year after year – just think of all the cash you will waste over the next 10 years if you don’t spend 20 minutes making the change to a cheaper energy supplier.